Emanual is a 10 limited partner in the EVI limited partnership He exchanges his partnership interest in EVI for a 20 limited partnership interest in DRI Both partnerships are in the oil drilling business Emanual 's adjusted basis for his EVI partnership interest is $100,000, and the fair market val...

a Amount realized 145000 Adjusted basis 100000 Realized gain 45000 Reco ...

Emanual is a 10% limited partner in the EVI limited partnership. He exchanges his partnership interest in

Question:

Emanual is a 10% limited partner in the EVI limited He exchanges his interest in EVI for a 20% limited interest in DRI. Both partnerships are in the oil drilling business. Emanual's adjusted basis for his EVI interest is $100,000, and the fair market value of the interest he receives in DRI is $145,000.
a. What is Emanual's recognized gain or loss associated with the exchange?
b. Would the answer in (a) be different if Emanual exchanged a general interest for a general interest? Explain.
Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...